Fitch: China Securitisation Market to Expand at a Slower Pace in 2016

China's securitisation market will continue to expand in 2016, although at a slower pace than in 2015 when issuance doubled to reach a record CNY600bn (USD91bn) from over 300 individual transactions, says Fitch Ratings in the first issue of the agency's China ABS Market Quarterly.

Growth in securitisation will be driven by changes in regulation that have made it simpler and more efficient for financial institutions to issue structured finance securities. The slowdown of China's economy could test the performance of collateralised loan obligations, but consumer credit is likely to continue expanding for many years to come - as China's economy shifts to a consumption-driven growth model.

The year 2015 was another active period for Chinese auto ABS issuance, with 12 transactions and a total issuance of CNY42bn (USD6.4bn). The steady asset performance and strong credit-enhancement underpin our stable outlook on the Fitch-rated Chinese auto ABS sector.

The current issue of the report provides data and commentary on the most recent developments in China's nascent securitisation market. In addition to commentary on the outlook for the market in 2016, the report also includes commentary on regulatory developments, performance of Auto ABS in China, as well as detail performance data on Fitch-rated transactions.